Chandigarh, October 6
Reiterating its commitment to giving industry a level playing field, the Punjab Government has decided to allow the free use of agricultural land for setting up new industrial units besides promising uninterrupted power supply to all IT units.
Punjab has not only declared health tourism as an industry but also decided to extend a series of benefits to the hotel and hospitality sector under its new industrial policy that lays increased emphasis on promoting both the IT and agro industry.
The new industrial policy that was earlier in the day given approval by the Council of Ministers also talks of the setting up of a land bank, development of the Goindwal Sahib Industrial Complex and maintenance and upgradation of infrastructure in industrial focal points, estates and areas.
Besides the passing of the Punjab Special Economic Zone Act, improving both air and road connectivity and setting up of a carbon credit cell in the Punjab State Industrial Development Corporation are the other salient points of the new policy that promises to end “inspector raj’ and minimise government controls while outsourcing regulatory measures.
Talking to newsmen here this afternoon, Punjab Industries Minister Manoranjan Kalia and Industries Secretary S. S. Channy said that under the new policy, the state would play the role of facilitator and “hand holding” as it was investor friendly.
Kalia said the thrust of the policy was reforms and minimising government controls as envisaged by the Punjab Social Development and Government Reforms Commission.
Instead of identifying industry
on the basis of investment for pollution control, it has been decided to use the level of pollution for the clubbing of industry under the green, orange and red categories. Orange is the new category where even those new industries with heavier investments will have lesser pollution controls.
Certain regulatory controls on the supply of power to industry have also been changed and feeders with 75 per cent of industrial load will be treated as industrial feeders.
Another major relief to industry is the rationalisation of VAT. Seventy-five per cent of the VAT refund against an indemnity bond, payment of interest on refund beyond 60 days, online and direct payment, option of e-filing of returns and periodic review of VAT rates are other new measures introduced.
For encouraging new industrial investment, there will be no more requirement for the change of land use from agriculture to industry besides there will be no change of land use charges on such agricultural land being used for industry. New industrial units would be permitted to get external development done from any agency under the supervision of the Department of Industry.
External development charges have also been fixed at Rs 15 lakh an acre for Mohali and 10 lakh for the rest of the periphery of Chandigarh other than the Chandigarh FEZ, Rs 5 lakh an acre in Amritsar, Ludhiana and Jalandhar and Rs 1 lakh for the rest of Punjab There will be special concessions for mega projects of 750 acres, 500 acres and 250 acres. The minimum investment limit for mega projects has also been specified in the new policy where exemptions have been linked to the size of the project.
Exemptions include relief in electricity duty, stamp duty and EDC for manufacturing units while in the case of industrial units, exemption will also cover land use fee and change of land use charges. Multiplexes will have 100 per cent exemption from entertainment tax for 10 years. Besides multiplexes will be free to fix the rates of entry tickets.
